A Better Way to Market Sustainable Products: Insights from NYU Stern & PwC Research

As consumer demand for sustainable products grows, companies face challenges in marketing these goods effectively to capture growth and command price premiums. Research from NYU Stern’s Center for Sustainable Business (CSB) and PwC sheds light on proven strategies to enhance the appeal, credibility, and business value of sustainable consumer packaged goods (CPGs).

Strong Business Case for Sustainable Products

• Growth Trends: Sustainability-marketed products grew at an impressive 12.3% annually from 2019 to 2024—over twice the rate of conventional products.
• Market Share: These products accounted for nearly one-quarter (23.8%) of total sales in 2024 across 36 CPG categories, representing about 40% of the overall market.
• Price Premiums: Consumers are willing to pay on average 9.7% more for sustainably produced goods. In practice, sustainability-marketed products commanded an average premium of 26.6%, exceeding 100% in some paper products and around 50% in coffee, cereal, and chocolate categories.

Key Strategies to Realize Full Value

1. Recognize Target Customers & Product Categories

• Millennial, college-educated, urban, and high-income shoppers show higher engagement with sustainable products.
• Categories like dairy have broad sustainable sales across demographics.
• Understanding which consumer groups drive sustainable product demand in your category is essential.

2. Amplify Product Appeal with a Balanced Messaging Mix

• Effective marketing combines a product’s core attributes (e.g., taste, cleanliness) with one or two targeted sustainability messages.
• Research with communication experts shows this approach increases appeal by 30 percentage points compared to using multiple core claims.
• Tailor sustainability claims to product-relevant benefits, such as “formulated with sustainable ingredients good for your skin” in skincare.

3. Prioritize Claims That Resonate & Build Trust

• Most compelling sustainability claims focus on direct consumer benefits:
  • Protecting human health (free of harmful ingredients)
  • Saving money
  • Supporting local farms and future generations
  • Preserving animal health
  • Originating from local or sustainable sources
• Less impactful are claims about biodegradability, traceability, packaging (except all-recycled content), or certifications alone.
• Certification seals aid regulatory validation but require complementary messaging to boost consumer trust.

Navigating Regulatory & Legal Risk

• Avoid vague descriptors like “clean,” “natural,” or “safe” that risk legal challenge, especially for products used by children or applied to skin.
• Stay abreast of evolving regulations such as the EU Corporate Sustainability Reporting Directive, Due Diligence Directive, and the proposed Green Claims Directive, all emphasizing evidence-backed sustainability claims.
• Building strong value chain traceability and robust scientific support is vital for credible claim substantiation.

Conclusion

The sustained growth and premium positioning of sustainable products are clear, but success hinges on thoughtful marketing that blends authentic sustainability messages with compelling product qualities. By targeting the right consumers, selecting meaningful claims, and substantiating them rigorously, companies can unlock the full value of sustainability—in both business performance and consumer trust.

Authors: Tensie Whelan, Distinguished Professor at NYU Stern and Founding Director of NYU Stern’s Center for Sustainable Business; David Linich, Principal at PwC US and expert in decarbonization and sustainable operations.

Design Delight Studio curates high-impact, authoritative insights into sustainable and organic product trends, helping conscious consumers and innovative brands stay ahead in a fast-evolving green economy.